Impact of urbanization on country's economic development: opportunities and challenges

Methods. This study is based on secondary data, which includes data from the World Bank, the United Nations (UN) and various academic studies. The methods used include: Comparative analysis – to assess the economic impact of urbanization in different countries; Statistical review – to study the relationship between urbanization rates and economic growth; Case study method – to analyze successful urban policies and problems. Results. The study found: Urbanization is a catalyst for economic growth: cities are the main driving force of the economy, where investments, employment and services are concentrated. A factor that promotes innovation and technological development – urban environments create opportunities for the rapid development of start-ups and technology companies. Expanding the labor market – urbanization creates new jobs and stimulates economic activity. Urbanization also fosters infrastructure development. The relationship between growth and urbanization is usually described in terms of traditional economic analysis, which clearly explains this phenomenon in terms of its own analytical approach. The same thing happens when claims about the relationship between growth and urbanization are based on the correlation between the level of urbanization and per capita production. Modern urbanization requires improvements in the areas of transport, energy, water supply and communications. Urbanization also is connected wtih attracting investment. Cities are attractive to investors because urban environments contribute to productivity and market expansion. Novelty. The study discusses the impact of urbanization not only on the economy, but also on social and environmental factors. It presents the role of technological urbanization, including the concept of smart cities . It shows how urbanization can be managed based on the principles of a green economy. Practical value. For policymakers, the results of the study will help government and municipal leaders improve urban planning and economic policies. For the business sector, the analysis of urbanization will help companies and investors to discover new opportunities in cities. For society - the studies show the impact of urbanization on the quality of life and the reduction of social inequality.